5 Reasons Why Renting Makes Better Financial Sense than Buying

5 Reasons Why Renting Makes Better Financial Sense than Buying

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A debate that has been going on for a very long time is whether it is better to rent an apartment or buy a home. Renting is often a better option for average people, couples and small families. This is especially true when you consider the financial benefits. You should know five reasons why renting makes better financial sense than buying.

No Down Payment

If you are planning to buy a house, then you are going to need to save a certain percentage of the total price in cash to make a down payment. This means you need to have a large amount of money on hand first. Making a down payment can leave you in a poor financial state just when you need the money the most. You do not have to make a massive down payment when renting an apartment. You can keep more of your money this way.

No Property Taxes

Everyone who owns a home needs to pay property taxes. These taxes are reassessed regularly. They rise and sometimes fall. Property taxes can be incredibly expensive if you live in a large home. There are serious penalties for not paying your property taxes. Renters never have to worry about property taxes. These are handled by the property managers. This allows for a more predictable budget while renting.

Low to No Maintenance Costs

Homeowners need to pay for every small thing that occurs in a house. This includes paying for a plumber, electrician or other professionals. These costs are minimal or nonexistent for renters since the landlords handle everything. Renters who choose an apartment in a location that is part of the Certified Rental Building Program can be certain the property is well maintained and the owners are reliable.

Lower Heating and Cooling Bills

Heating and cooling an entire house can become very expensive. You might have to heat multiple floors with an aging and inefficient system. Apartments are less costly to heat and cool. Most buildings have updated heating and cooling systems to provide maximum comfort without driving up utility bills unnecessarily.

No Financial Losses Due To Dropping Property Values

A final point to consider is that homeowners can lose money over time if property values drop. Homeowners might have to pay the entire amount of a mortgage for a home that is ultimately worth much less. Renters are immune from this type of loss. You simply pay the rent that is due without worrying about losses caused by declining property values.

Renting makes more financial sense because your bills are consistent, you are immune from real estate fluctuations and you do not have to worry about maintenance. This all allows you to save money each month. Renting is a smarter financial choice.

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